Iplan Solutions

What Are The Advantages Of Taxation In Switzerland? 🇨🇭

🔎 The Swiss government provides an opportunity to become a tax resident of the country and pay taxes not on income received outside Switzerland but on expenses. A lump-sum tax exact amount is calculated separately in each region and for a particular taxpayer.

🗓️ The minimum tax is CHF 250,000 per year. In this case, this amount mustn't depend on your income, the availability of funds in bank accounts, or the ownership of real estate outside of Switzerland. It is fixed and does not change over time.

📕 Residents of Switzerland do not pay taxes on income that they received in another country, but they pay taxes on expenses within the state.

📲 If you are interested in international taxation, for more detailed information and consultations, please get in touch with us by phone at +442045770914.

How Will The E-Privacy Regulation Impact Telematics-Based Insurance? ⏰

🔸 To offer telematics-based insurance policies, insurers collect and process data from terminal equipment, which will be regulated by article 8 of the new e-Privacy Regulation. Unfortunately, neither the Commission’s proposal nor the European Parliament’s amendments provide a sound legal basis on which this processing can continue.

🔸 The lack of a clear legal basis will eventually make it more difficult and riskier for insurers to offer consumers this innovative product. It would mean less choice for consumers and a missed opportunity to increase road safety in Europe.

Capital gains and asset transfer tax 💥

🔆 Whether you will be obligated to pay capital gains tax or asset transfer tax depends on the ownership structure at the moment of the sale. It can occur either when you sell the property itself if it is an asset deal or sell the company you purchased through if it shares the agreement.

🔝 In the case of an asset deal, capital gains tax is typically calculated as the difference between the sale price and the carrying amount of the property. The carrying amount is the cost of the property, less accumulated depreciation. While depreciation decreases the carrying amount, it increases the capital gains tax base.

👉🏽 In the case of a share deal, the property’s carrying value is of no importance for tax purposes. In this case, profits from the sale of shares are considered to calculate asset transfer taxes.

💡 For example, it would make more sense financially to purchase the property through a company. Investors who already have an exit strategy in mind when purchasing a property - such as those who plan to buy a property, flip it, and sell it at a profit five years down the road - typically favour this model.

Tax deductions - what can they be? 🤔

💶 For example, spouses raising children in Germany can claim a special tax deduction of €8,388 per child. If the child's parents do not live together or are divorced, each can get half of this amount. The state also pays child benefits.

👉🏽 It is also possible to claim a tax deduction for education. If the child attends a private German school, the deduction will be 30% of the tuition fee.

💥 You can also get a tax deduction for up to €1,000 for work-related expenses that your employer has not reimbursed:

➡️ Moving to another apartment because of work;
➡️ Travelling long distances to work;
➡️ Training and professional equipment;
➡️ Maintaining two houses if you have to work in another city and rent another apartment.

📙 Deductions are also made for insurance premiums, including health insurance, pension, and unemployment contributions.

📞 Contact us at any time convenient for you, and our experts will find and suggest which tax deductions are best applied in your case.

What happens if I cause the accident and have no car insurance? 🤔💭

🚗 In most cases, if you cause an accident, your liability insurance helps cover the other driver’s car damage costs and medical expenses - up to your coverage limit. But if you cause an accident and don’t have auto insurance, you may be at risk of being sued by the other driver for the cost of damages.

💥 The other driver’s insurance would typically kick in to cover their expenses in a no-fault state. While no-fault laws put restrictions on when drivers can file lawsuits, you still aren’t entirely risk-free. Depending on regulations, you could still be sued by the other driver. And remember, you’d need to cover your expenses out of pocket.